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Germany to mandate open market sales for new wind, solar plants
Published by Jessica Weisman-Pitts
Posted on November 13, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
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Published by Jessica Weisman-Pitts
Posted on November 13, 2024
2 min readLast updated: January 28, 2026
(Reuters) – Germany’s cabinet on Wednesday approved plans to require most operators of new wind and
(Reuters) – Germany’s cabinet on Wednesday approved plans to require most operators of new wind and solar power plants to sell their electricity independently on the open market, aiming to better integrate renewables into the country’s energy system.
Under a new energy reform, facilities as small as 25 kilowatts will need to self-market their power rather than selling it to the grid at guaranteed prices.
Germany aims to cover 80% of its electricity needs through renewables by 2030, up from 58% currently.
The plans announced Wednesday aim to help the country manage electricity surpluses, which often occur midday during summer and have led to negative electricity prices.
The proposed reform, however, faces uncertain prospects in the current legislative period, after the collapse of Germany’s governing coalition.
Until now, small- and medium-sized plants under 100 kilowatts have been able to sell their electricity to grid operators at fixed, guaranteed rates for 20 years.
The new rules would apply only to new plants, with some exceptions for very small solar installations, such as residential rooftop or balcony-mounted systems.
Berlin aims to reduce the burden of surpluses on the power grid, where excess solar energy can lead to negative prices by requiring more renewable operators to self-market.
Under the draft law, subsidies would no longer be paid out when market prices turn negative, creating incentives to invest in storage systems that hold excess power until prices are favourable.
(Reporting by Markus Wacket and Riham Alkousaa; Editing by Miranda Murray, Alexandra Hudson)
Renewable energy is energy generated from natural resources that are replenished constantly, such as sunlight, wind, rain, tides, waves, and geothermal heat. It is considered more sustainable compared to fossil fuels.
Solar power is energy harnessed from sunlight using solar panels or other technologies. It is a key component of renewable energy and contributes to reducing greenhouse gas emissions.
Electricity surpluses occur when the supply of electricity exceeds demand, often leading to negative prices. This can happen during peak production times, especially with renewable sources like solar energy.
Self-marketing in energy refers to the practice where energy producers sell their electricity directly on the open market rather than relying on fixed rates from grid operators.
Energy reforms are changes made to energy policies and regulations aimed at improving the efficiency, sustainability, and competitiveness of energy markets, often focusing on integrating renewable energy sources.
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